H.Con.Res. 25: Establishing the budget for the United States Government for fiscal year 2014 and setting forth appropriate budgetary levels for fiscal years 2015 through 2023.

GovTrack’s Bill Summary

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Library of Congress Summary

The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress.

House Republican Conference Summary

The summary below was written by the House Republican Conference, which is the caucus of Republicans in the House of Representatives.

This summary can be found at http://www.gop.gov/bill/113/1/hconres25.

Background

The Congressional Budget Act of 1974 sets out the congressional budget process, including requiring Congress to write a budget each year.  “The budget resolution is the only piece of legislation that views the federal government as a whole.”[1]   Congress implements the budget resolution’s policies through action on the debt ceiling, annual appropriations acts, and direct spending bills.[2]  

Last Congress, the House passed H.Con.Res. 34 by a vote of 235-193 (Roll Call#277) and H.Con.Res. 112 by a vote of 228-191 (Roll Call#151).   However, the Senate failed to pass a budget during the 112^th Congress.  In fact, the Senate last passed a budget on April 29, 2009 during the 111^th Congress.[3]    Moreover, the President has yet to submit his FY 2014 budget. The first and last timely budget submission made by the President occurred on February 1, 2010.   As a result, over the last several years, the budget, appropriations, and debt ceiling discussions have been consumed by fiscal deadlines and crisis. 

In the 113^th, the House has sought to reestablish order, through H.R. 325, No Budget, No Pay Act and H.R. 444, Require a Plan Act.  H.Con.Res. 25 is another step in the process building on the two previous budgets – improving the lives of every individual – by achieving balance in ten years.  In an article published in the Wall Street Journal, economists John F. Cogan and John B. Taylor report that implementing H.Con.Res. 25 would “raise gross domestic product by one percentage point in 2014 equivalent to about a $1500 increase for each household.  Ten years from now, at the end of the official budget horizon, we estimate that the entire plan would raise GDP by three percentage points, or more than $4000 per each U.S. household.” [4]

Summary

H.Con.Res. 25 establishes the budget for FY 2014 and budget levels for fiscal years 2014 through 2023.  The House budget resolution achieves balance by 2023, reducing spending by $4.6 trillion over the next ten years.  The House budget reaches this goal by addressing six key areas.

First, the budget proposes to simplify the tax code by establishing two rates – 10 and 25 percent – as well as repealing the alternative minimum tax; reducing the corporate rate to 25 percent; and transitioning to a territorial tax system. 

The budget resolution strengthens our federal safety net and welfare programs – repealing the Medicaid expansion and exchange subsidies authorized in the health care law.  At the same time, states are given greater flexibility to develop their own Medicaid programs as well as customize the Supplemental Nutrition Assistance Program (SNAP).  The budget resolution also reinstates the work requirement in the Temporary Assistance for Needy Families (TANF) program.

H.Con.Res. 25 preserves the existing Medicare program for those who are 55 and above and reforms it for future generations.  In addition, the budget repeals the Independent Payment Advisory Board (IPAB); reforms the medical liability system, and allows for means-tested premiums for high-income seniors.  With respect to Social Security, the budget establishes a trigger at which time the President is required to submit a plan that would achieve actuarial balance over the next 75 years.  The budget resolution also proposes reforms to civil service pensions – increasing federal employee contributions for retirement to half of the contribution (50-50 split between employee and employer).

The budget resolution calls for increased domestic energy exploration; restores competition to the energy sector; winds down Fannie Mae and Freddie Mac, and requires more accurate accounting as it relates to all federal loans and guarantees.  It also repeals Dodd Frank as well as the President’s health care law in their entirety. The budget reestablishes national security as a top priority – providing $579.2 billion for the equipment, training and compensation needed for continued success. The resolution also provides full funding for veterans, preserving our commitment to them.

Finally, the resolution makes needed reforms to the budget process, including extending current federal spending caps through the end of the budget window; creating a budget point of order against bills that increase net mandatory spending beyond the ten year window; authorizing the use of fair value estimates for credit programs; and calling on congressional committees to regularly review programs for waste fraud and abuse. 

It is also important to note that the budget resolution contains reconciliation instructions directing eight House authorizing committees to provide “at least” one billion dollars in deficit reduction over the 2014-2023 time period.

H.Con.Res. 25 by the Numbers

Cost

There is no score associated with the budget resolution. 

House Democratic Caucus Summary

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So, yes, we display the House Republican Conference’s summaries when available even if we do not have a Democratic summary available. That’s because we feel it is better to give you as much information as possible, even if we cannot provide every viewpoint.

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